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Renergen (ASX:RLT) - CEO, Stefano Marani - The Market Herald
CEO, Stefano Marani
Source: Africa Oil Week
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  • Natural gas and helium producer Renergen (RLT) has signed its first direct-to-consumer helium sales deal with a tier-one automotive supplier
  • The company could not be named but will purchase a significant amount of helium from Phase Two of the Virginia Gas Project
  • While the deal shows the viability of accessing helium directly from the refinery, Renergen is now working to diversify its customer base
  • It follows the recent completion of the fifth milestone at Virginia — the shipment of equipment from China to South Africa
  • Shares in Renergen are up 5.04 per cent to $2.50

Natural gas and helium producer Renergen (RLT) has signed its first direct-to-consumer helium sales deal with a tier-one automotive supplier.

Renergen noted "for reasons of confidentiality" it couldn't name the company, but added that the agreement will see a significant portion of helium from phase two of the Virginia Gas Project in South Africa placed directly to the customer.

Stefano Marani, CEO of Renergen, said the contract shows the viability of accessing helium directly from the refinery by customers and that Renergen is working to diversify its customer base beyond wholesalers.

"What really excites the team about this sales agreement is that from 2024, if you purchase a German premium brand vehicle, the overwhelming probability is that Renergen's helium will be powering the airbags keeping you safe," he added.

"It has been an excellent start to 2021 and Renergen will continue to focus on developing Virginia into a tier-one, globally significant LNG and helium project."

The deal follows the recent completion of the fifth milestone at the Virginia Gas Project: the shipment of equipment — including an escape air gas heater, liquid nitrogen vaporiser, boil-off gas heater, liquified natural gas (LNG) vaporiser and electrical control technology — from China to South Africa.

Marani said at the time that, despite the challenging work environment brought on by COVID-19 and the resulting impact to global supply chains, "the team has continued to mitigate these impacts to deliver on our stated goal of commencing production in 2021."

Shares in Renergen are up 5.04 per cent to $2.50 at 10:02 am AEST.

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